Question

4. Mr. Y invested $2,000 in two accounts. One pays 7%

annual interest; one 5%. At the end of 1 year, Mr. Y

earned $155 in interest. How much had Mr. Y invested

in the account paying 7%?

Answer 1

He invested approximately $2,215

Explanation:

Mr Y invested $2000 in two accounts.

One pays 7%, and the other pays 5%.

At the end of one year, Mr Y earned $155 in interest. We want to know how much Mr Y invested in the account paying 7%.

Let the amount he invested be X, then

7% of X = 155

(7/100)X = 155

0.07X = 155

X = 155/0.07

= 2,215

He invested approximately $2,215